Dow Jones Becomes More Volatile Than Bitcoin – Trustnodes

The Dow Jones stock index of United States’ biggest companies has become more volatile than the most volatile asset so far, bitcoin.

According to a chart from the Bespoke Investment Group, which provides bespoke research on investments, bitcoin is now less risky than the top stocks.

VanEck has also found in a long term study of bitcoin that the crypto “exhibited lower volatility than 112 stocks of the S&P 500 in a 90 day period and 145 stocks Year To Date.”

Bitcoin has outperformed Nasdaq and other stock indexes this September as  the currency refused to go lower while stocks fell.

Bitcoin has instead been sidewaying since June, decoupling in effect recently from following stocks.

Stocks on the other hand had another awful week, with Nasdaq down 3.8%  just on Friday.

Futures suggest for this Monday stocks will be stable, up maybe 0.2%, even as Dow falls below 30,000, Nasdaq nears 10500 and S&P 500 is closing in on 3500.

Two years of gains have thus been erased, with markets turning following the decision of OPEC+ to cut oil supply by a more than expected two million barrels a day.

That may feed into inflation, tying Fed’s hands as markets now expect a raise of interest rates to 4%.

If such decision is taken in November, it would be one of the fastest rake hike in history, from zero in March to 4% just eight months later.

That may raise concerns regarding the stability of the banking and financial system, so leading macro towards pulling bitcoin in two directions.

One, the same as stocks in as far as disposable income and growth. The other, however, as an alternative to the banking and traditional financial system, as an escape route, as a hedge.

Hence bitcoin has been sidewaying, with it to be see just what gets the upper hand.